EMI Calculator – Flat Rate & Reducing Balance
Use this advanced EMI calculator to calculate your loan EMI using reducing balance (diminishing) or flat interest rate. This calculator is suitable for home loans, personal loans and car loans.
Monthly EMI: ₹ 0
Total Interest: ₹ 0
Total Payment: ₹ 0
What is Reducing Balance EMI?
In reducing balance method, interest is calculated on the outstanding loan amount. As the principal reduces, interest also reduces. This method is used by banks for home and car loans.
What is Flat Rate EMI?
In flat rate method, interest is calculated on the full loan amount for the entire tenure. Flat rate loans usually appear cheaper but have higher effective interest rates.
Which EMI Method is Better?
Reducing balance EMI is more economical compared to flat rate EMI because interest reduces over time.